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G.K. Nair

NTPC has decided to source about five million tonne of LNG through international competitive bidding process.

Kochi , Sept. 5

THE National Thermal Power Corporation (NTPC) is likely to float tenders for setting up an LNG terminal in Kerala for expanding the capacity of its Kayamkulam power plant to 2,300 MW, after finalising the location based on the recommendations of a Mumbai-based consultant, who has just completed the feasibility study.

The corporation has two options. First, to set up a new port and terminal facility at Kayamkulam close to its thermal power plant, and second is to utilise the Kochi port for constructing the terminal and carry the gas through pipeline to the power plant, senior official sources at NTPC Kayamkulam told Business Line..

Stup Consultants was appointed to study the feasibility of both the options and submit a report. They have completed the study and the report is to be submitted anytime. "Once the location is finalised, tenders will be floated".

Request for qualification had already been floated and the offers have yet to be opened, they said. Probably, the decision would be taken linking the other LNG terminal projects in Gujarat. NTPC has decided to source about five million tonne of LNG through international competitive bidding process. It is envisaged that the gas supply shall fructify by 2006-07. The corporation had already received express of interest from interested parties for sourcing of re-gassified LNG/natural gas for its expansion programmes at Anta, Auraiya, Kawas, Gandhar and Kayamkulam gas power projects, they pointed out.

The advantage of setting up the terminal here is that the NTPC could make available LNG to other prospective buyers in and around Kochi such as FACT, which had already reached some understanding with the former in this connection, industry sources pointed out.

They said that the feasibility report on the expansion of Kayamkulam project by 1,950 MW is under scrutiny of the Central Electricity Authority. The Kerala Pollution Control Board has already completed its study after the public hearing on July 10, and a positive report has been sent to the Union Ministry of Environment and Forests, whose clearance for the expansion project is now awaited, the sources said.

They said the expansion of capacity of the power plant would take three years for commissioning, while the LNG terminal would take four years.

The Kerala Government and NTPC entered into an agreement for supplying the entire power generated here to the State. However, as power cost had gone up substantially the State Electricity Board had imposed load restrictions compelling NTPC to share power with the neighbouring States.

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